New Power Generation Inc. 

   
4700 Millenia Blvd 
Suite 500 Fifth Floor 
Orlando, FL 32839

npghq@npglife.org 

Retirement

Understanding the SECURE Act 2.0

This infographic is composed of a timeline that moves vertically down the page starting in 2023 and ending in 2033. The title is placed next to a vector image of the US Capitol spire and reads: Secure Act 2.0.This infographic is composed of a timeline that moves vertically down the page starting in 2023 and ending in 2033. The title is placed next to a vector image of the US Capitol spire and reads: Secure Act 2.0.Moving down the US Capital spire, underneath the title is text that reads: In the final days of 2022, Congress passed SECURE 2.0, the new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement. This sweeping legislation has dozens of significant changes; here is a timeline covering a few of the major changes of the new law.Moving down the US Capital spire, underneath the title is text that reads: In the final days of 2022, Congress passed SECURE 2.0, the new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement. This sweeping legislation has dozens of significant changes; here is a timeline covering a few of the major changes of the new law.Moving down the US Capitol dome, the timeline begins with 2023 and lists six changes: RMD age increased from 72 to 73. Employers can make Roth contributions to SIMPLE and SEP plans for employees. RMD penalty reduced from 50 percent to 25 percent.Moving down the US Capitol dome, the timeline begins with 2023 and lists six changes: RMD age increased from 72 to 73. Employers can make Roth contributions to SIMPLE and SEP plans for employees. RMD penalty reduced from 50 percent to 25 percent.Small business credit for establishing a workplace retirement plan increased from 50 percent to 100 percent. Over 50 catch-up contribution increased from 6,500 dollars to 7,500 dollars. Qualified Charitable Donation limit indexed for inflation.Small business credit for establishing a workplace retirement plan increased from 50 percent to 100 percent. Over 50 catch-up contribution increased from 6,500 dollars to 7,500 dollars. Qualified Charitable Donation limit indexed for inflation.Continuing down the US Capitol dome, the timeline progresses to 2024 and lists four changes: 1,000 dollars emergency withdrawal from retirement accounts. 529 plans can rollover into a Roth IRA.Continuing down the US Capitol dome, the timeline progresses to 2024 and lists four changes: 1,000 dollars emergency withdrawal from retirement accounts. 529 plans can rollover into a Roth IRA.Companies can match student loan payments with retirement contributions. Roth 401(k)s and Roth 403(b)s no longer have RMDs.Companies can match student loan payments with retirement contributions. Roth 401(k)s and Roth 403(b)s no longer have RMDs.Closer to the base of the US Capitol dome, the timeline transitions to 2025: Employers must automatically enroll employees in workplace retirement plans. Part-time workers who have worked at least 500 hours per year for two consecutive years are eligible to participate in a retirement plan. 10,000 dollar catch-up contributions now available for those aged 60-63.Closer to the base of the US Capitol dome, the timeline transitions to 2025: Employers must automatically enroll employees in workplace retirement plans. Part-time workers who have worked at least 500 hours per year for two consecutive years are eligible to participate in a retirement plan. 10,000 dollar catch-up contributions now available for those aged 60-63.At the base of the US Capitol dome, the timeline reaches 2033 with one final change: RMD age increases from 73 to 75.At the base of the US Capitol dome, the timeline reaches 2033 with one final change: RMD age increases from 73 to 75.The bottom of the infographic depicts part of the US Capitol dome, largely obstructed by text that reads: Retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same over time. This article intends to give you a broad overview of SECURE 2.0. It's not intended as a substitute for real-life advice regarding your retirement strategy. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are allowed under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.The bottom of the infographic depicts part of the US Capitol dome, largely obstructed by text that reads: Retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same over time. This article intends to give you a broad overview of SECURE 2.0. It's not intended as a substitute for real-life advice regarding your retirement strategy. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are allowed under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.
 

Related Content

The Threat of Identity Theft

The Threat of Identity Theft

An article informing readers about the threats of Identity Theft.

Is a SEP-IRA Right for Your Business?

Is a SEP-IRA Right for Your Business?

For some, the idea of establishing a retirement strategy evokes worries about complicated reporting and administration.

Test Your Estate Strategy Knowledge

Test Your Estate Strategy Knowledge

Estate management can help ensure that your assets are transferred according to your wishes while managing tax issues.

 

Have A Question About This Topic?


Thank you! Oops!

Retiree Health Care Coverage Overseas

Retirees traveling abroad need to know that their health insurance travels with them.

Do Our Biases Affect Our Financial Choices?

Even the most seasoned investors have biases affecting their financial choices.

When Should You Take Social Security

Monthly Social Security payments differ substantially depending on when you start receiving benefits.

View all articles

Social Security Tax Estimator

Estimate how much of your Social Security benefit may be subject to federal income tax.

Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio to understand how lenders may view your financial health.

What Is the Dividend Yield?

Calculate the dividend yield of a holding and see what that means for income over time.

View all calculators

Global and International Funds

Investors seeking world investments can choose between global and international funds. What's the difference?

RE: Retirement

How does your ideal retirement differ from reality, and what can we do to better align the two?

It May Be Time for a Financial Checkup

It’s never a bad time to speak with your financial professional about changes in your situation.

View all videos